In the past couple of years, many abandoned, contaminated urban properties have been given a second chance. These properties, known as "brownfields," are becoming attractive to real estate professionals for a variety or reasons. Recent legislative changes have reduced the legal liability of brownfields purchasers. Many government loan and grant programs have emerged to encourage redevelopment. And in certain areas, income and property tax incentives have become available as well.

In March, a proposed Superfund amendment was moved out of a Congressional Committee for consideration by the House of Representatives. That bill has a comprehensive federal brownfields proposal.

Brownfields success stories are emerging throughout the United States. The unthinkable five years ago is now more than just theoretically possible, it is being done every day. One recent example: a city purchased a portion of a Superfund site so that it could expand its successful industrial park. Five years ago, the mere suggestion that someone buy a Superfund site would be seen as a joke. But now, it is more than possible, it has successfully taken place.

Ten Brownfields Dos and Don'ts

Real estate professionals started to consider brownfields deals in the past couple of years. Before then, brownfields were generally viewed as time wasters. Based on the past two years of brownfields experience, the following ten practical rules for brownfields developers have emerged:

1. The rules keep changing. In the last three years, most States have enacted brownfields legislation. But, legislators inform us that they are watching how these laws are implemented. Expect several more generations of brownfields laws.

2. Grants and loans -- think loans. It is common place for the states to offer grants and loans for brownfields redevelopment. Generally, however, developers should expect to receive low interest loans, not grants.

3. Do not be risk adverse. By nature, developers are willing to take some measure of risk. While brownfields laws do, in fact, reduce risk to a large extent, they never eliminate risk.

4. Be willing to adjust. While plan changes may upset project predictions, brownfields developments often require changes as the remediation process continues. Sometimes, a minor project change can save a lot of money in site remediation costs with little impact on a project's bottom line.

5. There are no "cookie cutter" approaches. Every brownfields site must be analyzed from a financial, environmental, title, and marketing perspective.

6. What is in a title? Every developer wants clean title and a smooth deal. With brownfields projects, expect tax liens, judgments, and other liens.

7. Realistic expectations. Brownfields projects work, and some have been quite successful. Nonetheless, every project will not be a home run.

8. About tax relief. Many government brownfields laws offer some measure of potential tax relief. In fact, governments are often reluctant to provide tax relief unless they will be getting something in return. Those seeking tax relief must therefore be fair about the quantum of relief sought and make sure that the community at large will benefit from the project.

9. Love thy neighbor. A developer who ignores the community will likely fail.

10. Assemble a winning team. Most successful brownfields projects require the skills of financial, environmental, legal, and other professionals. The lowest price, or a low fee in exchange for on the job training, may not promote success.

The information provided in this column is written by Stuart Lieberman,a practicing environmental attorney, and is for general information purposes only. It is not legal advice and should not be used in place of legal advice.

Stuart Lieberman, Esq., and IRED.Com, Inc., will not accept any responsibilty for any reliance on the information in this column or any damages whatsoever resulting from reading this column.